<PAGE>

                                                                      EXHIBIT 11
                BEN FRANKLIN RETAIL STORES, INC. AND SUBSIDIARIES
                    COMPUTATION OF EARNINGS PER COMMON SHARE
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED           SIX MONTHS ENDED
                                                    SEPTEMBER 30,               SEPTEMBER 30,
                                               -----------------------     -----------------------
                                                  1996         1995           1996         1995
                                                 ------       ------         ------       ------
<S>                                            <C>           <C>           <C>           <C>
PRIMARY

EARNINGS
 Income (Loss) from
 Continuing Operations                          $(71,815)    $  2,958      $ (80,778)    $  3,323
 Discontinued Operations
  (Net of Taxes)                                 (23,423)      (1,934)       (25,831)      (3,840)
                                                --------     --------      ---------     --------
 Net Income (Loss)                              $(95,238)    $  1,024      $(106,609)    $   (517)
                                                --------     --------      ---------     --------
                                                --------     --------      ---------     --------
Shares
  Weighted average number of
    common and common equivalent
    shares outstanding                             5,463        5,463          5,463        5,523
                                                --------     --------      ---------     --------
Earnings per share:
 Income (Loss) from
  Continuing Operations                           (13.15)         .54         (14.79)         .60
 Discontinued Operations
  (Net of Taxes)                                   (4.28)        (.35)         (4.72)        (.69)
                                                --------     --------      ---------     --------
 Net Income (Loss)                              $ (17.43)    $    .19      $  (19.51)    $   (.09)
                                                --------     --------      ---------     --------
                                                --------     --------      ---------     --------
ASSUMING FULL DILUTION
EARNINGS
 Income (Loss) from
 Continuing Operations                          $(71,712)    $  3,328      $ (80,304)    $  4,064
 Discontinued Operations
  (Net of Taxes)                                 (23,423)      (1,934)       (25,831)      (3,840)
                                                --------     --------      ---------     --------
 Net Income (Loss)                              $(95,135)    $  1,394      $(106,135)    $   (224)
                                                --------     --------      ---------     --------
                                                --------     --------      ---------     --------
Shares
  Weighted average number of
    common and common equivalent
    shares outstanding                             5,463        5,463          5,463        5,523
                                                --------     --------      ---------     --------
                                                --------     --------      ---------     --------
  Additional dilutive effect
    of convertible notes if
    fully converted                                3,710        3,710          3,710        3,714
                                                --------     --------      ---------     --------
                                                --------     --------      ---------     --------
  Weighted average number of
    common and common equivalent
    shares as adjusted                             9,173        9,173          9,173        9,237
                                                --------     --------      ---------     --------
                                                --------     --------      ---------     --------
Fully diluted earnings per share:
 Income (Loss) from
  Continuing Operations                             N/A           .36           N/A           .44
 Discontinued Operations
  (Net of Taxes)                                    N/A          N/A            N/A          N/A
                                                --------     --------      ---------     --------
 Net Income (Loss)                              $   N/A      $    .15      $    N/A      $   N/A
                                                --------     --------      ---------     --------
                                                --------     --------      ---------     --------
</TABLE>


                                     - 16 -